Fast fashion store in trouble with 'drop in footfall' causing sales decline
PUBLISHED: 08:54 12 October 2019 | UPDATED: 09:19 12 October 2019
Retailer Quiz, with outlets across the region, has seen an 11% fall in sales in its shops after some "very challenging" high street conditions.
The retailer said its stores and concessions have suffered weaker-than-expected sales over the six months to September after a slump in footfall.
Quiz has a store in Castle Quarter, Norwich as well as concessions in House of Fraser, Chapelfield and in the city's Debenhams. It also has concessions in Debenhams in King's Lynn and in Palmers in Yarmouth and Lowestoft. It reported today that its total group revenues slipped 5% to £63.3m during the period, as online growth failed to offset its high street decline.
Sales across its high street stores and concessions slid by 11% to £31.3 million, down from £35.1 million in the same period last year.
However, the company rate of decline at its physical stores has "reduced in recent weeks".
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The retailer added that its average lease length is just over two years long and it will weigh up the economic benefits of each agreement when it comes for renewal.
Meanwhile, online revenues jumped 7% to £20m on the back of continued investment into its online proposition and product range.
Earlier this year the company launched a business review to drive its turnaround. It stated that it is confident of securing £2m to £3m in cost saving in the near term.
Tarak Ramzan, CEO, said: "Overall, the group's trading performance in the first half has been broadly in line with the board's expectations despite the difficult UK trading environment. Sales growth through Quiz's websites has continued, reflecting the investment in our product range and marketing initiatives.
"Whilst trading conditions are expected to remain challenging in the near term, the board remains confident that underpinned by Quiz's flexible business model and an increasing online focus, the group can return to sustainable profitable growth in the medium term."